Bitget App
Trade smarter
Open
HomepageSign up
Bitget>
News>
Deutsche Bank: Firing Powell Won't Save Much on Debt Costs

Deutsche Bank: Firing Powell Won't Save Much on Debt Costs

金色财经2025/07/23 18:14

According to a report by Jinse Finance, last month U.S. President Trump cited the cost of federal debt as a new reason to urge Powell to cut interest rates. However, a new analysis shows that dismissing the Federal Reserve Chair and forcing a rate cut would be futile. Deutsche Bank's Chief U.S. Economist Matthew Luzzetti and others wrote that replacing Powell would not change the Treasury's debt interest costs. Trump has repeatedly called for a 3 percentage point rate cut, claiming it would save over $1 trillion. But according to calculations by the Deutsche Bank team, while such a move would lower short-term Treasury yields, long-term Treasury yields would rise due to concerns that a more compliant Fed would mean higher inflation. Specifically, if Trump were to fire Powell, the Treasury would only save between $1.2 billion and $1.5 billion by 2027.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Trending news

More
1
Galaxy Digital Head of Research: The United States is very likely to establish a strategic bitcoin reserve within this year
2
Analysis: Realized BTC miner inflow value to exchanges reaches all-time high, indicating potential selling pressure

Crypto prices

More
Bitcoin
Bitcoin
BTC
$116,036.9
+0.86%
Ethereum
Ethereum
ETH
$4,726.43
+4.67%
XRP
XRP
XRP
$3.14
+2.85%
Tether USDt
Tether USDt
USDT
$1
+0.04%
Solana
Solana
SOL
$243.14
+2.24%
BNB
BNB
BNB
$927.47
+2.49%
USDC
USDC
USDC
$0.9999
+0.01%
Dogecoin
Dogecoin
DOGE
$0.2857
+10.00%
TRON
TRON
TRX
$0.3533
+1.37%
Cardano
Cardano
ADA
$0.9345
+4.31%
How to sell PI
Bitget lists PI – Buy or sell PI quickly on Bitget!
Trade now
Become a trader now?A welcome pack worth 6200 USDT for new users!
Sign up now
Trade smarter